Black Yak 2nd Generation Kang Jun-seok Faces Test of Management Ability

[Asia Economy Reporter Yujin Cho] Black Yak has begun a complete revision of its business plan this year to respond to the crisis caused by the novel coronavirus infection (COVID-19). The management ability of the second-generation Planning Director (Executive Director) Kang Joon-seok, who is leading this effort, is being put to a full-scale test, according to evaluations.

According to industry sources on the 19th, Executive Director Kang recently ordered a comprehensive review of the finalized business plan for this year and decided to lower the performance targets. A Black Yak official said, "As the management environment changes due to the COVID-19 response, we are discussing the possibility of lowering the initially set sales target," adding, "As a result, some reduction in selling and administrative expenses and changes in key business strategies such as marketing seem inevitable."

In the process of establishing this year’s business plan, Black Yak repeatedly deliberated on its identity as a traditional outdoor brand and the business direction to realize it. Opinions clashed between returning to the essence of the authentic outdoor Black Yak rather than focusing on external expansion and the need to change to secure competitiveness, making it difficult to reach consensus on numerous issues.

A Black Yak official pointed out, "There are differing perspectives among the members of the organization who have grown with Black Yak over the past 47 years, and internal gaps exist because of this," adding, "It is now a time when a role is needed to unite the organization and lead the business in a coordinated direction."

Executive Director Kang has been effectively leading all business divisions of Black Yak since this year, following the generational change personnel reshuffle and headquarters system reorganization carried out at the end of last year. The current COVID-19 crisis is seen as a testing ground for Kang’s management capabilities. An industry insider said, "Just as the lineup for the second-generation succession was established, an unexpected situation with COVID-19 arose," and added, "Executive Director Kang must integrate internal conflicts over brand identity amid market deterioration and accelerate the full-scale restructuring."

Immediate performance improvement is a pressing issue. Black Yak has not escaped a downward trend in both scale and net profit in recent years. Sales peaked at 580.5 billion KRW in 2013, its heyday, but have since shrunk to nearly half that level. Net income also plummeted from 82.9 billion KRW in 2013 to 1.7 billion KRW in 2018. Market share is also declining. Along with falling sales and reduced status, Black Yak’s market share dropped from 4th place in 2018 to 5th place last year.

Black Yak plans to focus on penetrating the U.S. market using the American outdoor brand Now as a lever, as well as on the Alpine Club platform business. Now is a brand that pioneered eco-friendly fashion trends domestically, and Executive Director Kang recognized the market’s potential early and made a decisive move. A Black Yak official said, "The Alpine Club has recently attracted young people in their 20s and 30s, expanding Black Yak’s potential," adding, "We plan to devote all efforts to enhancing brand awareness and commercialization centered on the Alpine Club platform, which is a core asset of Black Yak."

This content was produced with the assistance of AI translation services.